Insurance Guide

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There’s Plenty of Myths in the Insurance World – Don’t Let Them Steal Your Savings!

Insurance is something that most people don’t really think about unless they really need it. Yet don’t get desperate and just pick up any insurance. In order to get the most savings possible, you need to be as strategic about insurance as you are about anything else in life. If you don’t do this, then you’re bound to have problems in the long run. It would make a lot more sense from every angle if you just thought about the prevailing myths of insurance. Here’ a few classic ones we wanted to highlight

1 — Affluent Areas Pay Less in Terms of Insurance on Homes and Cars

This is one of the biggest myths around, and it’s one that can cost you big as a homeowner. You might assume that coverage is going to be a lot less since you live in a well to do neighborhood. However, insurance companies are looking at it differently. They feel that you are much more risky in this category because you have everything to lose. Thieves are going to want to hit wealthy neighborhoods because of the higher likeliness of actually getting stuff to take with them. There’s no reason to feed this type of behavior at all. You need to always think about what you’re going to ultimately do in the long run.

It would be better to accurately get a quote for your home based on the contents. Just because you live in a postcode that’s known for expensive living doesn’t mean that you’re necessarily meeting that standard yourself.

You have to always make sure that you’re looking at the bigger picture here, and that’s definitely going to be getting the most accurate quote you can. Don’t forget that you might be able to save money on that quote by paying annually rather than semi annually or monthly. It just depends on the insurer.

2 — Everyone Needs Life Insurance — Including Single People

This is a big myth that has pushed a lot of people to own life insurance even when they really don’t have a need for it. You might think that it’s wise to have life insurance, but if it’s just you then there’s really no point. Life insurance is better served for people who are the primary income provider of a family. This means that if something happens to them, they would have that insurance money to pass to their loved ones.

3 — Your Insurance Company Has to Approve All Claims When The Worst Happens

This myth is saved for last, as it really does get people in trouble. Let’s say that a burglar breaks into your house while you’re out shopping. If it’s proven that you didn’t take reasonable care to secure your property and/or your possessions, the entire claim can be turned down. That’s a tough pill to swallow but it’s reality. Insurance companies are all about risk management. They would lose profits in a flash if they approved every single claim out there. What you’re going to have to do is make sure that you’re thinking about the bigger picture and protecting your belongings to the fullest — even if you’re just going down the road for a few minutes.

It’s very evident that you will need to look over any policy that you do have right now. Looking over the fine print is something that’s always recommended, but you might be surprised at how often people really don’t take time to do this. They just assume that the insurance company is always going to be on their side, but this is definitely not the case either. The insurance company is looking out for itself and its shareholders. While it wants to give you a superior product, the reality is that there has to be restrictions of some kind in place. Study your policy well and if you have questions — make sure that you speak up. Good luck!